This article originally appeared in the January 22, 2003 Michigan Information Research Service. Copyright 2003, Michigan Information Research Service. All rights reserved.

The Mackinac Center for Public Policy suggested eliminating the state's
Agriculture Commission and selling off the state's two fairgrounds as a way
to make up $94 million of the estimated $1.6 billion budget deficit the
state faces in Fiscal Year 2004.

The $34 million in cuts Mackinac Center fiscal policy director Michael
LaFAIVE suggested for the Department of Agriculture budget equals 35 percent
of the department's appropriations for Fiscal Year 2003 and includes such
measures as getting rid of the Office of Racing Commissioner.

"Gov. (Jennifer) GRANHOLM should be congratulated for setting a
budget-cutting tone for her new administration," LaFaive said. "The
fiscal
pressure exerted by the current $1.6 billion budget deficit gives lawmakers
a chance to re-evaluate programs that are unnecessary, counterproductive, or
which distort market mechanisms and incentives and would be better handled
by the private sector."

In particular, LaFaive went after state-sponsored programs that could be
handled by the industry, such as oversight for seed quality, a marketing
strategy for chestnut crumble and free strawberries and asparagus currently
given away at the New Buffalo Welcome Center.

The most politically charged suggestion was the elimination of the
five-member Agriculture Commission and the release of 35 percent of the
Agriculture Commissioner's staff. The Ag Commission's duties of setting
policies can be handled by a governor-appointed Ag Commissioner, who would
need 35 percent less executive staff since the department, in theory, would
be 35 percent as large.

Another commission that can go is the Marketing and Bargaining Board, which
monitors the negotiations of producers and the handlers of fruit and
vegetables.

"There is no reason to believe that agriculture producers, wholesalers,
and
processors are any less able to conduct commerce than producers, wholesalers
and users of other goods," wrote LaFaive, who estimated that the state
would
save $63,300 by the elimination of the Ag Commission and the Bargaining
Board.

Sen. Cameron BROWN (R-Sturgis), the chairman of the Senate Appropriations
Subcommittee on Agriculture, declined comment on the report until he
reviewed it more thoroughly, but stated that as a Senator from an
agriculture district, he is not in favor of a whole-scale gauging as the
Mackinac Center proposed.

Brown met with Department of Agriculture budget officials for the first time
Tuesday and emphasized that nothing has been decided as of yet.

"We want to treat that budget as respectably as we can," Brown
said. "It
will get a fair hearing."

Rep. Mike PUMFORD (R-Newaygo), chair of the House Appropriations
Subcommittee on Agriculture, sounded a bit skeptical, but said he's not
ruling anything out.

"I haven't had a chance to thoroughly look at these [suggestions], but
any
cuts that are going to hurt agriculture, I'll be opposed to," Pumford
said.
"I think it's ironic that someone has come up with $30 million in cuts
to a
$100 million budget. But, as far as I'm concerned everything is on the
table. I'm willing to sit down and consider any suggestion."

After briefly reviewing the report, Keith CREAGH, Chief Deputy Director of
the Department of Agriculture, said the Mackinac Center's analysis trims
around $5 million from the state's actual General Fund. The rest of the
money that is being cut is pass-through dollars the state manages with
federal money.

So, while the scope of the Department of Agriculture could be greatly
reduced, whether it should be reduced is more of a philosophical debate over
the role of the state Department of Agriculture than a matter of trimming a
$1.6 billion hole in the General Fund budget.

"Should the state be in this business or that business? That is a fair
policy debate to have," Creagh said.

Other suggested budget cuts from the Agriculture budget included the sale of
the state fairgrounds in Detroit and Escanaba as a one-time source of
revenue. This type of action has been suggested before and the Mackinac
Center is taking it one step further by suggesting the state get itself out
of the fair operations business all together.

Due to the collapse of a lease arrangement between the state, fair officials
and a private developer, the Agriculture Department will be stuck paying an
estimated $900,000 more for fairgrounds maintenance in 2003. One suggestion
offered by former Sen. Leon STILLE (R-Spring Lake) was to move the State
Fair to Michigan State University. Selling this property could mean $57
million more for the state, LaFaive said.

"As with other forms of private entertainment, state fairs should sink
or
swim on their own merits," he wrote. "If there is demand for these
summer
festivals, the people who value them the most will be willing to fund and
operate them without state influence."

LaFaive suggested the elimination of the Racing Commissioner and several
millions of dollars that go to improving horse race tracks and boasting
prize purses.

"The Michigan Bred program is sold as a way to improve Michigan horse
racing
by helping to subsidize Michigan 'winners,'" LaFaive wrote. "The
truth is
that it actually harms Michigan's racing industry by excluding superior
racing bloodlines from outside Michigan borders. It is not illegal to breed
a Michigan horse with one from Kentucky, but doing so will exclude the
owners of champion race-horses from collecting larger purses."